Crypto.com Sues SEC Following Wells Notice, Denounces Unjust Regulation

Crypto.com has taken a significant step by filing a lawsuit against the U.S. Securities and Exchange Commission (SEC). This action comes after the company received a Wells notice from the SEC, which signals the agency's intent to pursue legal action over alleged violations of securities laws.

In their announcement, Crypto.com explained, “Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff.” They pointed out that this situation highlights the SEC’s ongoing “unauthorized and unjust regulation by enforcement.” This is happening even though there are bipartisan signals suggesting that future administrations might adopt a more favorable approach to cryptocurrency.

The statement continued, “For now, improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the U.S.” They acknowledged that taking legal action against a federal agency is unprecedented for them. However, they felt they had no other choice given the SEC's actions.

In other news, analysts from Presto Labs are raising some eyebrows regarding FTX's bankruptcy plan. They suggest that the excitement among retail investors about the potential $16 billion in cash repayments might be premature. They question whether these funds will actually flow back into the crypto market. The U.S. Bankruptcy Court for the District of Delaware recently approved FTX's Plan of Reorganization, which aims to compensate 98% of creditors.

Additionally, the U.S. Supreme Court has decided not to hear a case about the ownership of 69,370 Bitcoin seized from the Silk Road marketplace. This decision could allow the government to sell the $4.38 billion worth of Bitcoin. A federal court in California had previously ruled against Battle Born Investments, which claimed it had rights to the seized Bitcoin through a bankruptcy estate.

Lastly, FTX customers can expect to see their funds returned soon. A judge in Delaware approved the firm's bankruptcy plan, which will distribute $16 billion to former clients. This amount includes funds recovered since FTX's collapse. Before its downfall, FTX was one of the most recognized brands in the cryptocurrency space.